Noticing increasing condo association fees across the board? Well, you're not alone. And, if you haven’t noticed them already, you might want to prepare yourself for an increase in your Homeowner’s Association (HOA) Fees or condo association fees.

Here’s why…

We expect increasing condo association fees due to increasing Florida insurance rates and costs in general, especially after the 2022 hurricane season and new governmental rules about aging condo buildings. And, it is not limited to just condos. Houses are experiencing increasing insurance premiums and rates as well, but they are reflected in different ways.

Check out this video for a closer look at the signals that point to YOUR Miami condo fees and HOA fees increasing in 2023:

— Why are my Miami Condo Association Fees Increasing? 

Let’s talk about why your Miami condo fees are rising. 

• First off: The cost of Insurance and premiums. When insurance claims and casualties increase, the cost of insurance goes up, and so do premiums, and so then do your association fees. After this past hurricane season, many condos have seen a spike in the price of their insurance costs.
• Second: Employee and labor costs. Inflation in general is increasing costs across the board for the cost of construction materials and labor. Those costs get passed down to you in your condo association fees. 
• Third: Condo Maintenance Requirements. After the tragic Champlain Towers condo collapse in Surfside a few years ago, condo maintenance requirements, inspections and concrete restoration requirements became stricter and more frequent, and those rising costs are still being reflected in condo association fees and special assessments.

— How Much will My Miami Condo Fees Go Up in 2023?

In summary, we predict a 10% to 20% percent increase in condo association fees for this year and possibly into next year. For your sake, we hope that we are wrong, but our expert advice is to prepare for the worse.

— What do Rising Miami Condo Maintenance and HOA Fees Mean for Home Buyers?

Now, when your association fees go up, your expenses go up. But, an increase in expenses doesn't mean that the value of your property will go down. Especially since condo association fees are increasing for just about everyone. Overall, the value of real estate and homes in Miami and South Florida is still up in 2023, and that is something to celebrate. 

— What Do Rising Miami Condo Maintenance and HOA Fees Mean for Home Sellers and Homeowners?

Whether you own a condo or home, costs will go up regardless. So, if you are a home seller or homeowner, we advise being prepared mentally and financially for a likely 10% to 20%  increase in condo association fees. Just know that it's all a part of the game of home ownership.

If you have more questions about your condo fees or HOA fees, or if you are considering buying, selling, or investing in Miami, please reach out anytime. We’re happy to help you.